Question 1

When reviewing a corporate income statement,to find gross profit,cost of goods sold is subtracted from

Accepted Answer

A) revenue. 
B) net income. 
C) earnings before interest and taxes. 
D) operating expenses. 
A) revenue. 
B) net income. 
C) earnings before interest and taxes. 
D) operating expenses.

Question 2

Technical analysts look for stock price patterns which

Accepted Answer

A) indicate stocks with rapidly changing P/Es. 
B) indicate a possible price trend. 
C) indicate value trends. 
D) demonstrate profit trends. 
A) indicate stocks with rapidly changing P/Es. 
B) indicate a possible price trend. 
C) indicate value trends. 
D) demonstrate profit trends.

Question 3

Low interest rates can increase demand for stocks and therefore have a direct impact on stock prices.

Accepted Answer

A) True 
 B)False

Question 4

A way to evaluate the performance of a stock investment is to compare it to

Accepted Answer

A) The buy and sell recommendations from analysts 
B) The returns of other stocks in your portfolio 
C) The stocks relevant industry index 
D) The historical return of the Canadian stock market 
A) The buy and sell recommendations from analysts 
B) The returns of other stocks in your portfolio 
C) The stocks relevant industry index 
D) The historical return of the Canadian stock market

Question 5

The Investment Industry Regulatory Organization of Canada (IIROC)limits the amount that can be borrowed for a TSX list stock to 70 percent for stocks that trade for more than $5 per share.

Accepted Answer

A) True 
 B)False

Question 6

When you look at inventory turnover (cost of goods sold divided by average daily inventory),a high ratio means that a company is more efficient than those with lower ratios.

Accepted Answer

A) True 
 B)False

Question 7

The best assessment of the performance of your selection of stocks is to compare the returns to

Accepted Answer

A) the average gains or losses you had in the last five years. 
B) the average returns of GICs. 
C) a comparable stock index during the same period. 
D) the prime rate set by the Bank of Canada. 
A) the average gains or losses you had in the last five years. 
B) the average returns of GICs. 
C) a comparable stock index during the same period. 
D) the prime rate set by the Bank of Canada.

Question 8

The over-the-counter (OTC)market is a non-transparent communications network.

Accepted Answer

A) True 
 B)False

Question 9

Fiscal policy is about how the government manages interest rates and money supply.

Accepted Answer

A) True 
 B)False

Question 10

An example of fraud in financial reporting would be

Accepted Answer

A) allowing orders to be cancelled. 
B) arriving at a P/E using the weighted average number of shares outstanding during the year. 
C) inflating revenues by recording income from contracts which will extend beyond one year. 
D) advising your auditors about a change in accounting procedures. 
A) allowing orders to be cancelled. 
B) arriving at a P/E using the weighted average number of shares outstanding during the year. 
C) inflating revenues by recording income from contracts which will extend beyond one year. 
D) advising your auditors about a change in accounting procedures.

Question 11

A market in which stock prices fully reflect all information that is available to investors is called

Accepted Answer

A) inefficient. 
B) efficient. 
C) overvalued. 
D) factored. 
A) inefficient. 
B) efficient. 
C) overvalued. 
D) factored.

Question 12

A company's earnings are $3 per share,its dividend is $2 per share,and its stock price is $30 per share.Its P/E is

Accepted Answer

A) 15. 
B) 10. 
C) 6) 
D) 15 percent. 
A) 15. 
B) 10. 
C) 6) 
D) 15 percent.

Question 13

What is the safest type of stock order to use?

Accepted Answer

A) Market order 
B) Limit order 
C) Buy stop order 
D) Sell stop order 
A) Market order 
B) Limit order 
C) Buy stop order 
D) Sell stop order

Question 14

The Toronto Stock Exchange (TSX)is the only Canadian stock exchange.

Accepted Answer

A) True 
 B)False

Question 15

If you need to be sure you will sell your shares of a certain stock if the price drops below a certain threshold,which type of order should you place?

Accepted Answer

A) Sell stop order for price X 
B) Limit order to sell for price X 
C) Market order to sell for price X 
D) Short sell order for price X 
A) Sell stop order for price X 
B) Limit order to sell for price X 
C) Market order to sell for price X 
D) Short sell order for price X

Question 16

Low interest rates tend to entice investors into the stock market where they can achieve better returns.

Accepted Answer

A) True 
 B)False

Question 17

If a company's P/E is 20 and its industry's mean P/E is 15,the company is likely considered to be

Accepted Answer

A) overvalued. 
B) poorly managed. 
C) undervalued. 
D) risky. 
A) overvalued. 
B) poorly managed. 
C) undervalued. 
D) risky.

Question 18

If Jim's stock return was -1 percent and the TSX stock index had a 3 percent return,the excess return of Jim's stock is

Accepted Answer

A) -4 percent. 
B) 2 percent. 
C) -2 percent. 
D) 4 percent. 
A) -4 percent. 
B) 2 percent. 
C) -2 percent. 
D) 4 percent.

Question 19

When the Bank of Canada uses interest rates to regulate the economy,it is using

Accepted Answer

A) monetary policy. 
B) fiscal policy. 
C) economic growth policy. 
D) gross domestic product (GDP)policy. 
A) monetary policy. 
B) fiscal policy. 
C) economic growth policy. 
D) gross domestic product (GDP)policy.

Question 20

Venture capital refers to funds that investors are prepared invest in risky new businesses with growth potential.

Accepted Answer

A) True 
 B)False

When reviewing a corporate income statement,to find gross profit,cost of goods sold is subtracted from

Technical analysts look for stock price patterns which

Low interest rates can increase demand for stocks and therefore have a direct impact on stock prices.

A way to evaluate the performance of a stock investment is to compare it to

The Investment Industry Regulatory Organization of Canada (IIROC)limits the amount that can be borrowed for a TSX list stock to 70 percent for stocks that trade for more than $5 per share.

When you look at inventory turnover (cost of goods sold divided by average daily inventory),a high ratio means that a company is more efficient than those with lower ratios.

The best assessment of the performance of your selection of stocks is to compare the returns to

The over-the-counter (OTC)market is a non-transparent communications network.

Fiscal policy is about how the government manages interest rates and money supply.

An example of fraud in financial reporting would be

A market in which stock prices fully reflect all information that is available to investors is called

A company's earnings are $3 per share,its dividend is $2 per share,and its stock price is $30 per share.Its P/E is

What is the safest type of stock order to use?

The Toronto Stock Exchange (TSX)is the only Canadian stock exchange.

If you need to be sure you will sell your shares of a certain stock if the price drops below a certain threshold,which type of order should you place?

Low interest rates tend to entice investors into the stock market where they can achieve better returns.

If a company's P/E is 20 and its industry's mean P/E is 15,the company is likely considered to be

If Jim's stock return was -1 percent and the TSX stock index had a 3 percent return,the excess return of Jim's stock is

When the Bank of Canada uses interest rates to regulate the economy,it is using

Venture capital refers to funds that investors are prepared invest in risky new businesses with growth potential.

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 4: Personal Investing - Investing in Stocks

When reviewing a corporate income statement,to find gross profit,cost of goods sold is subtracted from

Technical analysts look for stock price patterns which

Low interest rates can increase demand for stocks and therefore have a direct impact on stock prices.

A way to evaluate the performance of a stock investment is to compare it to

The Investment Industry Regulatory Organization of Canada (IIROC)limits the amount that can be borrowed for a TSX list stock to 70 percent for stocks that trade for more than $5 per share.

When you look at inventory turnover (cost of goods sold divided by average daily inventory),a high ratio means that a company is more efficient than those with lower ratios.

The best assessment of the performance of your selection of stocks is to compare the returns to

The over-the-counter (OTC)market is a non-transparent communications network.

Fiscal policy is about how the government manages interest rates and money supply.

An example of fraud in financial reporting would be

A market in which stock prices fully reflect all information that is available to investors is called

A company's earnings are $3 per share,its dividend is $2 per share,and its stock price is $30 per share.Its P/E is

What is the safest type of stock order to use?

The Toronto Stock Exchange (TSX)is the only Canadian stock exchange.

If you need to be sure you will sell your shares of a certain stock if the price drops below a certain threshold,which type of order should you place?

Low interest rates tend to entice investors into the stock market where they can achieve better returns.

If a company's P/E is 20 and its industry's mean P/E is 15,the company is likely considered to be

If Jim's stock return was -1 percent and the TSX stock index had a 3 percent return,the excess return of Jim's stock is

When the Bank of Canada uses interest rates to regulate the economy,it is using

Venture capital refers to funds that investors are prepared invest in risky new businesses with growth potential.

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters